Serious problems highlighted by a state audit of the Erie R.I.S.E. Leadership Academy Charter School could hamper the school's efforts to renew its charter.

State Auditor General Eugene DePasquale on Monday issued an interim audit of the school that has found fault with school board oversight, the school's academic performance, and its compliance with state and federal laws and the school's charter.

Interim audit findings are only issued by the Department of Auditor General when, during the course of a review, auditors identify issues that require immediate attention. It is the first issued by DePasquale.

Among the issues identified:

- The charter school's academic performance is failing, as demonstrated by its School Performance Profile score of 58.4 out of a possible 100 for the 2012-13 school year, and its scores of 29.17 percent in math and 28.42 percent in reading on the 2012-13 Pennsylvania System of School Assessment.

- Several employees violated state regulations by collecting salaries from the charter school while simultaneously receiving retirement payments, including Chief Executive Officer Greg Myers, who for more than a year collected a $120,000 salary from the charter school while receiving retirement benefits. Myers was a longtime principal in the Erie School District.

- High student-teacher ratios, lack of attendance monitoring, and concerns about classroom setup.

Auditors also found that the board failed to monitor a financial management company working with the school. The company has access to the school's bank accounts. It controls payment of invoices, manages staff hiring and payroll, bills school districts for tuition, handles vendor contracts, and amends the school's budget.

The charter's board of directors bears some responsibility for the situation, he said.

"Regardless of whether you think the financial management company or the CEO is good, bad or indifferent, the board's job is to make sure these people are doing their job. But the board has, in essence, given away the store to people who should be working for them."

About 275 kindergarten through sixth-grade students are enrolled at the school, in the former Sacred Heart School building at 2501 Plum St. Founded in 2011-12, its charter is up for a five-year renewal.

District Solicitor Tim Sennett said the majority of the issues found in the interim audit could be grounds for nonrenewal.

"The findings of the Auditor General will be included in the investigation being conducted by the School District of the City of Erie as part of the renewal process," Sennett said. "A final report will be prepared for presentation to the School Board for their consideration and action. We anticipate concluding this process within 30 days."

Matthew Cummings, the district's director of communications, said the findings "are consistent with the significant deficiencies the district administration, district solicitor and school board have been studying as part of the charter renewal request."

"The board will take the full audit report under consideration as it decides whether or not to renew the school's charter," he said.

Myers declined to address each finding in detail. He said some issues already have been corrected. He also said there were "inaccuracies" in the finding, but did not elaborate.

Myers said he and the board will meet soon on the findings. That meeting had not been scheduled Monday morning, he said.

Myers said he isn't worried that the findings could affect the school's renewal chances. The public should be confident in the leadership and management of the school and the education students are receiving there, he said.

"These are things that can be corrected," he said of the findings.

Constance Ratcliff, chairwoman of the charter's board, said they will address the audit "very seriously." Auditors did not speak with board members directly, Ratcliff said. If they had, board members could have shown auditors progress on some of the issues cited, she said.

"The board's objective is to correct the school's deficiencies as recommended by Auditor General DePasquale's report in a timely manner," she said.

ERICA ERWIN can be reached at 870-1846 or by e-mail. Follow her on Twitter at twitter.com/ETNerwin.